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🚨KelpDAO Exploit Freeze: DeFi Enters Emergency Mode ... Following a multi-million dollar exploit, several protocols froze the rsETH market. This demonstrates how a single exploit can destabilize the entire DeFi ecosystem. Reports indicate that approximately 116,500 rsETH worth approximately $292 million–$293 million was drained from the KelpDAO bridge. The exploited assets were allegedly used as collateral in several lending protocols to borrow ETH/WETH. Due to the high risk of contagion, several protocols immediately took emergency measures. What does "Exploit Freeze" mean? A freeze means temporarily freezing a specific market or collateral to prevent further borrowing by attackers, to prevent problematic collateral from being used, to mitigate liquidation chaos, and to allow the team time to investigate. In a crisis, swift action like this is often the first line of defense. Several reports indicate that Aave V3 and V4 froze the rsETH market. SparkLend and Fluid also reportedly halted their markets, while several other vaults and bridges also temporarily paused their operations. This is crucial because in DeFi, response speed is just as important as code security. Delayed action can have a domino effect. The result is a temporary weakening of DeFi sentiment, depressed token lending protocols, and a shift in user sentiment to perceived safer assets like stablecoins. Like and follow for more information #KelpDAOExploitFreeze $ETH $AAVE $USDC